Ch. 567

LAWS OF MARYLAND

CHAPTER 567

(Senate Bill 316)

AN ACT concerning

Tax Exempt Financial Institutions -
Supervision and Examination - Termination

FOR the purpose of repealing a certain provision which allows
certain tax exempt financial institutions to terminate the
Bank Commissioner's power to examine and supervise them
under certain circumstances; requiring the Bank Commissioner
to supervise and examine certain financial institutions; and
generally relating to tax exempt financial institutions.

BY repealing and reenacting, with amendments,

Article - Financial Institutions

Section 12-701 and 12-705

Annotated Code of Maryland

(1986 Replacement Volume and 1988 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Financial Institutions

12-701,

(A) A financial institution may apply to the Bank
Commissioner to be supervised and examined by the Bank
Commissioner to the same extent that a banking institution is
supervised and examined under Title 5, Subtitle 2 of this
article, other than § 5-203, if:

(1)  The financial -institution is a nonstock
corporation under Title 5, Subtitle 2 of the Corporations and
Associations Article which is recognized by the Internal Revenue
Service as exempt from tax under § 501(c)(3) of the Internal
Revenue Code of 1954, as amended;

(2)  A majority and all controlling members of the
financial institution are persons designated and approved by any
banking institutions or national banking associations; and

(3)  The financial institution is engaged solely in
the extension of credit, making of loans and arranging of
financing for socially or economically disadvantaged businesses
for the purpose of:

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